Photo: AP Images
A year ago, when the FBI approached former SAC portfolio manager Mathew Martoma, who was charged with insider trading last month, here’s how he reacted according to Dealbook’s Peter Lattman: Last winter, another agent confronted Mathew Martoma, a pharmaceutical-industry analyst, at his 8,000-square-foot Florida mansion. As they stood on the front lawn, with Mr. Martoma’s wife and children inside, the agent told him that they had evidence that he had broken the law.
Overcome with stress, Mr. Martoma passed out.
Keep in mind Martoma has a “fake lawn,” according to a Bloomberg News report. A fake lawn is just artificial grass.
Anyway, last month, Martoma was charged in what is believed to be “the most lucrative” insider trading scheme ever. Martoma worked at CR Intrinsic Investors, a subsidiary of SAC.
He is accused of using negative confidential drug trial info in pharmaceutical companies, Elan Corporation and Wyeth, between the summer 2006 and mid-July 2008. The hedge fund was then able to sell off its positions and short those stocks, the complaints alleged.